"Mortgage banking is a business of scope and scale, and we believe that the combined company will fill the void created by the ongoing departures of many banks from the overall industry," WL Ross & Co Chief Executive Wilbur Ross said in a statement.

Mortgage servicers such as Ocwen collect mortgage payments from borrowers and foreclose on properties. They also make advances to mortgage owners to cover things like principal and interest payments when a loan goes bad.

The deal, scheduled to close by year-end, is expected to immediately add to Ocwen's earnings after accounting for transaction-related expenses.